The USDCHF pair has been a subject of intense scrutiny as it navigates through a crucial phase of its uptrend. The pair has maintained its position above a rising trend line on the 4-hour chart, suggesting that the uptrend from the 0.8729 level remains intact.
Impressive Upside Extension
The upside move from 0.8729 has extended to as high as 0.9019, showcasing the pair’s bullish momentum. However, the subsequent pullback from this level suggests that a consolidation phase for the uptrend is currently underway.
Range Trading and Consolidation
As the pair consolidates, traders can expect range trading between the 0.8900 and 0.9019 levels to unfold in the coming days. This range could provide opportunities for nimble traders to capitalize on the pair’s movements within these boundaries.
Upside Resumption Potential
While the consolidation phase is underway, traders will be closely monitoring the 0.8900 support level. As long as this level holds firm, the upside move could be expected to resume, potentially leading to a breakout of the 0.9019 resistance level.
Such a breakout could trigger another wave of bullish momentum, with the pair potentially targeting the 0.9100 level, followed by the 0.9180 area.
Downside Risks and Trend Line Significance
On the downside, a breakdown below the 0.8900 support level would indicate that a lengthier consolidation for the uptrend from 0.8729 is needed. In such a scenario, the pair would likely find support at the rising trend line on the 4-hour chart.
Traders will be closely watching the trend line support, as only a decisive break below this level could signal the completion of the broader uptrend, potentially leading to a significant shift in the pair’s trajectory.
Key Levels to Watch
In this volatile phase, traders will be keeping a close eye on the following key levels:
- Rising trend line (current support)
- 0.8900 (support)
- 0.9019 (resistance)
- 0.9100 (potential upside target)
- 0.9180 (additional upside target)
The price action around these levels will be instrumental in determining the pair’s next move and the potential for a continuation of the uptrend, a consolidation phase, or a potential reversal.